The Nigerian Bulk Electricity Trading (NBET) has successfully completed the first tranche of its N4 trillion Power Sector Multi-Instrument Issuance Programme.
The management of NBET made the disclosure in a statement on Tuesday.
According to the statement, the inaugural N501 trillion bond issue comprises a fully subscribed N300 trillion bond issued to the market—including asset managers, banks, pension funds, and retail investors—as well as an additional N201.02 trillion bond.
NBET said the bond was issued to Power Generation Companies that had signed the settlement agreement.
”The seven years bonds which were issued by NBET Finance Company PLC (a Special Purpose Vehicle established for this transaction) are fully guaranteed by the full faith and credit of the Federal Government of Nigeria.
”The successful completion of this inaugural tranche marks a critical milestone in the implementation of the programme and reflects strong market confidence in the government’s reform agenda for the power sector,” the statement read.
Acting Managing Director of NBET, Johnson Akinnawo, was quoted to have said that the successful close of the N501 billion bond represented a major step in resolving the long-standing challenge that had constrained the power sector for years.
“This intervention will significantly improve liquidity across the value chain, enable operators to stabilise their operations and support renewed investment in the Nigerian Power Sector.”he said.
According to him, CardinalStone Partners Limited, a leading Investment banking firm in Nigeria, led the consortium of
appointed professional parties as Lead Financial Adviser and Lead Issuing House to successfully execute the N501,021,000,000 Series 1 Bond Issue working closely with the NBET.
He also stated that NBET served as the transaction sponsor, while the Office of the Special Adviser on Energy to President Bola Tinubu led the settlement negotiations and engagements with the Generation Companies, including championing the PPSDRP initiative.
‘In addition to the professional advisers, the the NBET boss further acknowledge the support of all members of the Presidential Power Sector Debt Reduction Committee particularly Mr Wale Edun, Minister of Finance and Coordinating Minister of Economy, whose leadership and support provided the bedrock for the success,” Akinnawo stated.
The acting Managing Director also commended all those who played vital roles in making the capital raise a success, including key power sector stakeholders as well as government authorities such as the Debt Management Office.
”Central Bank of Nigeria, the Securities and Exchange Commission, the National Pensions Commission, Nigerian Revenue Service and the Nigerian Electricity Regulatory Commission who facilitated enhancements for the bond Issue.
”These settlements form part of Phase 1 of the programme, which is designed to restore liquidity to the power sector, strengthen the balance sheets of critical market participants and create a more sustainable foundation for electricity supply in Nigeria,”he said.
According to Akinnawo, NBET remains committed to working closely with the Federal Government, market participants, and transaction advisers.
He said this collaboration was aimed at ensuring the transparent and efficient deployment of proceeds in line with the objectives of the Presidential Power Sector Debt Reduction Programme.
He also reaffirmed NBET’s commitment to market reforms aimed at enhancing the long-term financial viability of Nigeria’s electricity market.
